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The digital market for games is quickly closing the gap on retail and we’ll see downloadable software overtaking retail within “a couple of years,” TimeGate CEO Adel Chaveleh has told VideoGamer.com.
In an interview with VideoGamer.com, the Section 8: Prejudice developer revealed he believes the retail market is too difficult for most publishers to compete in.
“It’s a tough market,” he said, “and it’s fortified. To go in and compete at retail, you either have to be one of those that are firmly entrenched in retail or you’ve got to able to go buy your way in. If you draw up some analogies to the music industry, a few years back – not even that long ago – we’re already accepting that the music industry is digital. You want music? Go buy it on iTunes or every other outlet that’s out there now.”
He added: “The gaming market will evolve that way, too. It’s not where the iTunes dynamic is now, but a couple of years now we will look back and see that digital has overtaken retail.”
Chaveleh also explained why he thinks bigger publishers like Activision and EA haven’t quite cracked the digital market.
“The digital space for them is secondary,” he said, “they’re not wired that way; they have to go move 5 million units for it to be successful. Their overhead is so high and I don’t think they have the development process down yet – their dollars are too expensive, if you will.”
As an example, Chaveleh mentioned DICE’s critically-acclaimed downloadable shooter Battlefield 1943.
“You see Battlefield 1943? It came out and it did good numbers. It didn’t move their needle – there was no DLC for it! If we do those numbers [with Section 8: Prejudice] we’re going to support it.”
Section 8: Prejudice is a download-only sequel to the 7/10 original, which was published to retail markets for 360 and PC in 2009 by SouthPeak, though TimeGate later split off and self-published the PS3 version of the game in 2010.
Section 8: Prejudice will be released on 360, PS3 and PC during Q1 2011.
